The canary in the energy paradigm is failing
The cackling cults of climate change will be pleased but it may be a short lived pleasure
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This morning Bloomberg News1 reported that the current energy squeeze “will trigger social unrest” according to Blackstone Inc. co-founder Stephen Schwarzman. Not surprisingly his views were echoed by Larry Fink, the Chairman of BlackRock Inc who said, “there's a high probability of oil soon reaching US $100 a barrel”.
Will this projection be of any interest to the G20 and the COP26 participants this weekend? Seems unlikely to this writer.
For starters the Chinese, the Russians and Indians won’t be at these meetings. The biggest players polluting the world with Co2 have their own agenda which does not even remotely align with the establishment views of rich western countries.
Blackstone Inc. co-founder Stephen Schwarzman said at a recent conference in Saudi Arabia, “we’re going to end up with a real shortage of energy,”. “And when you have a shortage, it’s just going to cost more and it’s probably going to cost a lot more. And when that happens, you’re going to get very unhappy people around the world, in the emerging markets in particular.”
Could not agree more.
Inflation is the new normal and is spreading like a global pandemic. And like the pandemic it is not a creation of nature. It is man made for reasons best known to its creators.
Larry Fink, chairman of BlackRock Inc, the world’s biggest asset manager makes it very clear. He was reported by Bloomberg News as saying, “There are many structural reasons for that. Short term policy related to environmentalism, in terms of restricting supply of hydrocarbons, has created energy inflation and we are going to be living with that for some time.”
Commodities such as oil, natural gas and coal have soared this year. The fabric of the world economy is stained with the pandemic, the failure of supply chain systems, the greed of corporations, and the folly of populist leftists to spend money they don’t have to please niche interests.
After the G20 and COP26 echo chamber meetings are over with nothing to remember but hyperbole from the participants, winter will well and truly begin. If it turns out to be colder than usual, the price of energy no doubt will go up. Will European countries halt gas exports to their neighbors? The harsher the winter the more likely.
The negative impact on folks who may be unemployed, hungry, and shivering in the dark is not difficult to imagine. The climate change mob better understand that a hungry, cold angry mob will not be receptive to much negotiation.
Given the facile agenda in preparation for the tough economic future of their constituent’s western leadership is unconcerned for the probable winter of discontent of many millions.
Larry Fink summed it up beautifully.
“We’re not focusing on long-term solutions; we’re not trying to change the world in a granular basis. We have these visions we could go from a brown world, and we could wake up tomorrow there’d be a green world. That is not going to happen.”
https://financialpost.com/commodities/energy/oil-gas/energy-squeeze-will-trigger-unrest-says-blackstones-schwarzman